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Number of listings removed from our directory since 1st November 2019 = 1962

Review of the Flat Rate Pricing Model

submitted on 7 March 2018
What is flat rate pricing?
First, it is important that you know that flat-rate pricing system is neither a “one price fits all” approach, nor is it meant to provide you with an unreasonable and unjust price for a service rendered. Contractors in either HVAC, plumbing or electrical field makes uses of this flat pricing system to give customers a fixed and fair price, even before they are hired. This means you can be aware of your bills before you set on repairing, which gives you the chance to be in control. How does flat rate pricing work?
It makes use of a simple analysis. The price given to you is taking from the mean for parts costs and approximate time to spend, which is later summed with your parts markups and labor rates. After the calculation, the result is usually just and affordable to the homeowner.

One of the formula being used by flat rate pricing system for repairs is discussed below Your Repair = (company’s hourly rate x estimated repair time) + (your parts mark-up x average parts cost)

Why use flat rate pricing system
This system has appeared to be pleasing to both parties: customers and service provider. Its benefit to give just and reasonable price has been one of the major reason. Other reasons are discussed below:

A Customer-Focused Approach
It usually stressful using the old time and material to suggest your prices. It comes with a lot of hassle for both homeowner and the service provider. This is often at your customer's disadvantages, you will have no idea of the price of the service rendered until it is done. Due to this, many conversations between service professionals and customers end up complaints.

However, using flat rate pricing approach, you become aware of the price up-front. The price is usually given immediately after the technician has done a proper analysis of the problem. Now, you can have time to think about if you could really afford to do it now.

Furthermore, you can easily show your customers that you are not overcharging them and you both end the negotiation peacefully and without much stress.This pricing system helps keep your customers relaxed and happy.

Pay for Quality Service
This is also of benefit to both customers and technicians alike. Using the flat rate system you don’t have to bother about staying longer or shorter on a job because of the hourly rate, but getting the job done right. This allows the house owner to focus more on the overall value instead of the rates presented to you.

Contractors’ jobs are often thought to be hard since you have to do more negotiating trying to get homeowners convinced, however you don’t have to get heated up under the collar. Flat rate pricing model makes it all easy and fun, providing your company business to operate with efficiently and smoothly.

This is the reason why many contractors (HVAC, Plumbing, and electrical) are switching to flat rate pricing system, you can also enjoy the benefits it presents to everyone.

Note, the pricing system offers just and reasonable price, however, this doesn’t mean the price presented to customers will be low. Fair being discussed here means you will not be overcharged by some technician because he is spending more time fixing your home. Fair actually means able to take care of the cost while it recording some profit.

If you are no longer worried about the hourly rate, it is certain your customers will get a satisfaction from the service rendered by your technician.

Reduce Account Receivables
Since all price is stated up front with the aid of the new pricing system, it is very simple to set an expectation for payments immediately you hang up. Unlike past years requesting for payment as to go through vigorously argument and bargaining. Now, all you have to do is asked and the customers who are still appreciating your effort will be willing to pay.

Also, there should be no hard time receiving payment, both parties agreed to the price for your service upfront. This mean receiving payment on site comes with a reduced argument, which brings about an equally reduced account receivable and eventually, you get more money in your wallet.

Why wait? Get started with flat rate hvac pricing.

 







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